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equity risk premium

   Also found in: Wikipedia 0.24 sec.
Equity Risk Premium
The extra return that the stock market provides over the risk free rate to compensate for market risk.

Notes:
A higher rate of return is required to entice investors into a riskier investment .

equity risk premium
The extra return expected from investments in common stocks compared to the return from U.S. Treasury securities.
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One should start the process with the long-term return of the equity markets (S&P 500 or MSCI World), which is the historical equity risk premium of about 6 percent plus the current Treasury bill return of 4 percent or so.
A more effective investment committee: there's a better way to meet ... by Morrell, Louis R. / University Business
What happens if the equity risk premium returns to its historic norm or rises?
Social InSecurity: Looking for Answers in the Equity Markets by Financial Executive
It includes detailed discussions and techniques for valuing businesses in various industries, and also discusses and compares the Standard & Poors Equity Risk Premium Study to the Ibbotson Risk Premiums.
Gain an Insight into the Techniques Used for Valuing Businesses in ... by Business Wire
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